Sensex falls over 100 points; financials, metals drag

Benchmark indices have extended losses and are trading near day’s low weighed by financials and metal shares.

Read more from our special coverage on "MARKET"

• Flat-to-positive opening seen on mixed Asian cues
• When terror strikes, markets go bulletproof
• Half of world stocks embrace bull market on Fed-fuelled rally
• Markets end flat amid consolidation; Nifty holds 7,700
• Govt counts on buyback amid slump

At 11:40 am, the S&P BSE Sensex is down 146 points to quote at 25,192 and the Nifty50 is down 35 points to quote at 7,681. Among broader markets, BSE Midcap and Smallcap indices are up 0.4%-0.5%.

The top losers from the Sensex pack are Sun Pharma, ICICI Bank, Bharti Airtel, Tata Steel and Lupin.

Shares of metal companies were trading lower on the bourses on profit booking. Vedanta, Hindalco Industries, Steel Authority of India (SAIL) and Bhushan Steel were down more than 2% each, while Tata Steel, Jindal Steel & Power, JSW Steel and NMDC down 1%-2% on the National Stock Exchange (NSE).

In the currency front, the rupee weakened by 24 paise to quote at 66.88 against the dollar in early trade today at the Interbank Foreign Exchange market on month-end demand for the American currency from importers and banks.

****************************
Updated at 10 am
After a flat opening, markets have turned weak with metals and select Index heavyweights dragging the Nifty below 7,700 mark.

At 10:00 am, the S&P BSE Sensex is down 58 points to quote at 25,279 and the Nifty50 is down 17 points to quote at 7,699.

Participants are patiently waiting for the Reserve Bank of India (RBI) monetary policy review due on April 5 amid hopes of a 25 basis points cut in interest rates. Meanwhile, volatility is likely to be witnessed this week on account of March series futures and options contracts expiry.

Top 5 losers in the Sensex pack include Hindalo, Sun Pharma, Tata Motors, ICICI Bank and Tata Steel down 1%-2.5%.

____________________
(updatd at 9:15 am)
 

After an extended weekend, benchmarks have opened the Monday session on a flat note mirroring a mixed trend across the Asian peers. However, an upward revision in the US GDP numbers and rise in crude oil prices is likely to dictate the trend on the bourses.

At 9: 15 am, the S&P BSE Sensex is up 39 points to quote at 25,376 and the Nifty50 is up 11 points to quote at 7,727.

Participants are patiently waiting for the Reserve Bank of India (RBI) monetary policy review due on April 5 amid hopes of a 25 basis points cut in interest rates. Meanwhile, volatility is likely to be witnessed this week on account of March series futures and options contracts expiry.

"Post the gains during last week, the Nifty index has now reached yet another landmark of 7700 within no time. As of now, we do not see any weakness on charts and thus, we reiterate our view that traders shouldn't pre-empt any reversal until we see any definite signal," said a morning note from Angel Broking.

"However, having said that, one can adopt a cautious approach if Nifty reaches 7750 - 7780 (strong resistance of the Weekly ’89 EMA’) levels by booking timely profits or trailing stop losses; but, shorting is strictly avoided in such kind of strong optimism. On the downside, 7600 – 7550 would now be seen as a strong support. Meanwhile, individual stocks are giving good moves and thus, traders should focus on such potential trades," it adds.

In the technology pack, Infosys, Wipro and TCS are trading higher between 0.7%-1.7% amid a firm closing on the Wall Street after an upward revision in the US GDP numbers 

GLOBAL MARKET

The dollar remained firm and Asian stocks edged higher on Monday after fairly strong consumer spending led to an upward revision in U.S. economic growth in the fourth quarter, helping to underpin investor sentiment.

Japan's Nikkei .N225 gained 0.8 percent while U.S. stock futures ESc1 ticked up 0.2 percent in early Asian trade, though it is still slightly down on the quarter.

Share markets in Australia, New Zealand and Hong Kong were closed for holidays, leaving MSCI's broadest index of Asia-Pacific shares outside Japan .MIAPJ0000PUS little moved in early trade.

U.S. gross domestic product increased at a 1.4 percent annual rate in Oct-Dec, above the previously reported 1.0 percent pace, the third GDP estimate showed on Friday.

STOCKS IN ACTION

Tata Motors has secured a follow-on contract from the Indian Army to supply 619 units of its high-mobility vehicle (HMV) 6X6 multi-axle truck. The stock is trading 0.6% lower.

Natco Pharma has shed 8% on receiving "minor" observations by US Food & Drug Administration (USFDA) following recent inspections at its two facilities and they will not have an adverse impact on its current or future products.

A section of officers and employees of IDBI Bank are going on strike from Monday to protest against the government's plan to pare its stake in the lender. The stock is down over 1%.

Sterlite Technologies, founded by Anil Agarwal of Vedanta Group, is among the early companies to have bagged a smart city project. Sterlite. The stock is up 1%.

Adani Enterprises is up 0.5%. Adani Group has offered 49% in its Rs 5,000-crore Dhamra LNG project in Odisha to staterun gas utility GAIL India trading 1.5% higher and refiner Indian Oil Corporation trading flat. 

The Board of Directors of Tata Steel is expected to meet on 29th March in Mumbai to discuss whether to retain or sell the plants in Scunthorpe and Port Talbot in the UK. The stock has inched down.

Mangalore Refinery and Petrochemicals will shut a crude unit that can process 180,000 barrels of oil per day (bpd) for a about a week from April 1 for maintenance, said a media report. The stock is down 2.6%.

NALCO had been allotted Utkal-D & E coal blocks, near the company's Captive Power Plant in Angul district of Odisha. The stock is down 1%. 

With Reuters input